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CBOT soyoil, soyameal sink as soy falls, funds sell

CHICAGO: Soyoil futures at the Chicago Board of Trade tumbled to contract lows on Friday, as commodity fund selling and forecasts for higher supplies sent the soy complex reeling. Soymeal fell to the lowest levels in nearly three weeks.

Soyoil settled 0.27 to 0.37 cent per lb lower, with March contracts down 0.37 at 15.37 cents, the lowest close for a spot CBOT contract since Dec. 17. March also set a contract low at 15.33. May fell 0.34 to 15.70.

Soymeal settled $1.70 to $2.60 per ton lower, with on March down $2.40 at $161.30, the contract's lowest close since on Feb. 8. May fell $2.20 to $163.90.

CBOT soybeans fell more than 7 cents a bushel to end at six-week lows, leading the way down for the product markets, traders said. Funds were estimated to have sold at least 8,000 soybean contracts, 5,000 meal and 1,500 soyoil on the day.

The soy complex's losses were partly a response to an improved crop outlook for the US Midwest in the wake of widespread rainfall this week, which provided some relief for dry soils. The rains eased trade concerns that this year's corn and soybean crops would be planted in unfavourably dry conditions.

US Department of Agriculture crop projections released Friday fuelled selling, traders said. The USDA at its annual outlook conference projected 2000/01 ending US soybean stocks at 510 million bushels, up 48 percent from an estimated 345 million for the end of 1999/2000.

The USDA projected ending US soyoil stocks for 2000/01 at 2.345 billion lbs, compared to an estimated 2.13 billion for 1999/2000.

"The USDA projections for oil carryout next year were another part of an ongoing dismal outlook" for the US soyoil market, said Dale Gustafson, grains and oilseed analyst for Salomon Smith Barney Inc. in Chicago.

US soyoil exports and vegetable oil markets in general have languished recently amid abundant supplies globally and lackluster demand from major vegoil importers, such as China.

The weather and USDA projections overshadowed relatively decent weekly export data from the USDA. The USDA's weekly export sales report listed net US soymeal sales at 112,300 tonnes, 23 percent below the previous week and 28 percent below the four-week average.

Net US soyoil sales totalled 11,400 tonnes, 59 percent below the previous week and 36 percent below the four-week average, but within expectations for 5,000 to 15,000 tonnes. China bought and shipped 21,400 tonnes of soyoil during the latest reporting week, the USDA said.

In the trading pit, ABN AMRO Inc. sold 1,000 on May meal contracts, Prudential Securities sold 400 on March, 200 on May and 400 on July, O'Connor & Co. sold 600 May and Iowa Grain sold 500 on May, floor sources said.

In soyoil, Refco Inc. sold 1,000 on May, Cargill Investor Services sold 400 on May, ABN AMRO bought 600 on May and FIMAT Futures Inc. bought 400 on May.

Soymeal volume during on Friday's pit session was estimated by the CBOT at 42,000 contracts, compared to 37,086 on Thursday. Soyoil volume was estimated at 30,000 contracts, compared to 25,014 on Thursday.-Reuters